Cam Newton, the former NFL quarterback, has spoken openly about the financial challenges he faces after retiring from professional football. Newton, 36, ended his career in 2021 following the expiration of his $6 million contract with the Carolina Panthers.
"Being in the NFL, everyone knows there's a large sum of money that comes to you in a short span of time, and being away from the game for three years, those checks don't come in the same," Newton said during an episode of the FOX reality TV show, Special Forces.
He admitted the income drop has made it difficult to feel like "Superman" to his eight children. "It hurts me knowing that I can't provide like I once did," Newton wrote on Instagram.
In a YouTube video, Newton pointed to lifestyle creep as a major factor in his financial struggles and those of other professional athletes.
The U.S. unemployment rate has worsened, with 2025 posting the weakest annual job growth rate since 2003. The Federal Reserve cut interest rates repeatedly in 2025, but these efforts did not fully correct the unemployment situation.
On the labor market side, the workforce is aging and shrinking due to reduced immigration. Employers face economic uncertainty from tariffs and rising input costs, making hiring more challenging. Approximately one-fifth of companies said they were reducing hiring because of tariffs, according to a survey by the Federal Reserve Banks of Atlanta and Richmond, alongside Duke University.
Widespread layoffs of civil servants have occurred, with the U.S. federal workforce dropping to its lowest levels in at least a decade. According to the Wall Street Journal, job hunts have become more desperate, as workers cobble together part-time gigs, raid 401(k)s, and get waitlisted by DoorDash.
Like Newton, many now face hard choices and uncomfortable lifestyle adjustments.
Americans' total credit card debt reached $1.23 trillion as of the third quarter of 2025, the highest balance since the New York Fed began tracking this figure in 1999. Professional athletes are not immune to significant debt; former Tampa Bay Buccaneers wide receiver Anthony Brown reportedly filed for bankruptcy in 2024 after owing nearly $3 million to eight creditors.
Most households should examine their credit card debt when income drops, as these liabilities can quickly become unsustainable. Credit card debt is known for high interest rates; the average rate was 19.65% as of the start of 2026, according to Bankrate.
The avalanche and snowball methods are two common approaches to paying down debt. The avalanche method focuses on paying highest-interest debts first, while the snowball method starts with smaller debts to build momentum.
After tackling debt, focusing on expenses is crucial. If income changes, activities like vacations and dining out may no longer be affordable. Dave Ramsey's "beans and rice" approach can help pay off debt and build savings.
Many experts recommend at least three to six months' worth of expenses in an emergency fund. In 2025, 81% of U.S. workers worried they would lose their jobs.
A high-yield account, such as a Wealthfront Cash Account, can be a place to grow emergency funds, offering competitive interest rates and liquid access to cash. The account provides a base variable APY of 3.25%, with new clients getting a 0.65% boost for three months, totaling 3.90% APY. This is ten times the national deposit savings rate, according to the FDIC's December report.
With no minimum balances or account fees, 24/7 withdrawals, and free domestic wire transfers, funds remain accessible. Wealthfront Cash Account balances up to $8 million are FDIC-insured through program banks.
Moneywise's best high-yield savings accounts list for 2026 includes options offering up to 4.05% APY.
Setting aside money each month for investing can provide passive income if careers take unexpected turns. Investing a small portion regularly can make a difference due to compound interest.
For example, investing $50 each week for 20 years amounts to $123,821, assuming 8% compound growth. The S&P 500 has delivered an average annualized return of 11.1% over the past 20 years.
Acorns allows investing spare change from everyday purchases by rounding up spending to the nearest dollar and investing the difference in low-cost diversified ETFs. A $4.25 coffee becomes a 75-cent investment. Larger portions of paychecks can be invested in low-cost S&P 500 ETFs through Acorns, with a $20 bonus for signing up with a recurring deposit.